Shaily Engineering Plastics Limited (SHAILY) AI Stock Analysis

• Market Cap: ₹110.14B
• Dividend Yield: 0.08%
• Average Volume (3M): 57.69K
• Price to Earnings (P/E): 69.5
• Beta (1Y): 1.18
• Revenue Growth: 31.18%
• EPS Growth: 99.37%
• Country: IN
• Employees: 629
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 8.13
• Shares Outstanding: 45,955,093
• 10 Day Avg. Volume: 150,960
• 30 Day Avg. Volume: 57,691
• PEG Ratio: 1.41
• Price to Book (P/B): 14.95
• Price to Sales (P/S): 10.41
• P/FCF Ratio: 194.74
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 40.1
• Revenue Forecast (FY): ₹10.38B

• Rating: 65 Neutral
• Price Target: ₹2,450.00 ▲(9.43% Upside)
• Action: Reiterated Date: 03/18/26
• Date: Action: Reiterated 03/18/26

The score is primarily supported by strong financial performance (growth, expanding margins, improving leverage, and positive free cash flow). This is tempered by mixed technicals (negative MACD despite elevated RSI/Stoch) and a demanding valuation (high P/E and very low dividend yield).

Positive Factors

Sustained revenue growth

Consistent double-digit revenue growth indicates durable demand for contract manufacturing services and successful program wins. Over 2–6 months this supports predictable production volumes, better fixed-cost absorption and a stronger base for future program renewals and upsells.

Improving and healthy margins

Rising gross and net margins reflect operational efficiency, pricing discipline and higher-value product mix (including regulated healthcare parts). Sustained margin expansion supports durable cash generation and reinvestment capacity for tooling and quality systems.

Stronger balance sheet and cash generation

Lower leverage plus positive free cash flow and operating cash exceeding net income provide financial flexibility. Over months this enables funding of molds, capex and working capital for new programs without stressing liquidity or needing external financing.

Negative Factors

Customer / program concentration risk

Business relies on multi-year programs with a limited set of customers; loss or non-renewal of a major program can create steep revenue cliffs. Over the next 2–6 months this structural exposure can make growth lumpy and increase negotiation leverage risk.

Raw material (resin) cost exposure

Margins are structurally sensitive to resin price volatility and to timing of pass-through to customers. Commodity swings and input-cost lag can compress margins and working-capital needs for months, pressuring durable earnings if not hedged or contractually protected.

Regulatory qualification lead-times

Serving regulated healthcare markets creates lengthy qualification and documentation cycles that slow new customer onboarding and scale-up. This structural friction makes revenue ramps lumpy and ties capacity to protracted approvals over 2–6 months or longer.

Shaily Engineering Plastics Limited Business Overview & Revenue Model

Company Description

Shaily Engineering Plastics Limited manufactures and sells precision injection moulded plastics components in India. The company offers plastic pumps, spray devices, insulin injector pens, specialty packaging, and containers for solid orals and liquid formulations used in the pharmaceutical industry; kitchen and cooking devices, storage and cleaning products, and plastic and plastic/electronic toys; and casings for cosmetics. It also offers automotive components and engineering plastics. The company exports its products to approximately 35 countries worldwide. Shaily Engineering Plastics Limited was incorporated in 1980 and is based in Vadodara, India.

How the Company Makes Money

SHAILY primarily makes money by manufacturing and supplying engineered plastic parts and assemblies to customers on a business-to-business (B2B) basis. Revenue is generated from (1) sale of molded plastic components/assemblies produced to customer specifications, where pricing typically reflects factors such as resin costs, tooling complexity, process requirements (including precision and clean manufacturing needs), and order volumes; and (2) tooling and product-development-related work associated with bringing new parts into production (e.g., design-for-manufacture support and manufacture/qualification of molds), where applicable. The company’s earnings are influenced by long-term customer programs and repeat production orders, operating leverage from high-volume manufacturing, and the mix of end-markets (notably regulated healthcare/pharma applications that can involve qualification, documentation, and compliance-related manufacturing requirements). Specific significant partnerships, named customers, segment-level revenue splits, or contract structures are null.

Shaily Engineering Plastics Limited Financial Statement Overview

Summary

Strong profitability and growth signals: revenue up 22.6% (2025), gross margin improved to 43.1%, and net margin rose to 11.8%. Balance sheet leverage declined (debt-to-equity 0.34) with higher ROE (17.0%). Cash flow improved with free cash flow turning positive and operating cash flow exceeding net income (OCF/NI 1.18), though cash flow strength trails profitability.

Income Statement

The company shows strong revenue growth with a 22.6% increase in 2025 compared to the previous year. Gross profit margin is healthy, increasing from 36.9% in 2024 to 43.1% in 2025. The net profit margin also improved significantly from 8.9% to 11.8%. EBIT and EBITDA margins are solid, reflecting good operational efficiency. Overall, the income statement indicates strong growth and improved profitability.

Balance Sheet

The debt-to-equity ratio has improved from 0.46 in 2024 to 0.34 in 2025, indicating a reduction in leverage. The return on equity increased from 12.5% to 17.0%, showing enhanced profitability. The equity ratio remains stable at around 58.7% in 2025, reflecting a solid capital structure. The balance sheet is strong, with reduced leverage and improved returns.

Cash Flow

Free cash flow has turned positive in 2025, showing a significant improvement from negative figures in previous years, with a growth rate of over 1500%. Operating cash flow to net income ratio is 1.18, indicating effective cash generation from operations. The cash flow statement reflects improving liquidity and cash generation capabilities.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	9.19B	7.87B	6.44B	6.07B	5.68B	3.61B
Gross Profit	4.55B	3.33B	2.39B	1.86B	1.75B	1.21B
EBITDA	2.47B	1.75B	1.16B	936.72M	798.95M	594.07M
Net Income	1.46B	931.19M	572.91M	351.50M	352.66M	220.21M
Balance Sheet
Total Assets	10.55B	9.33B	7.82B	6.93B	6.77B	4.67B
Cash, Cash Equivalents and Short-Term Investments	256.65M	231.38M	222.17M	275.21M	431.47M	9.82M
Total Debt	1.89B	1.88B	2.09B	1.88B	1.75B	2.00B
Total Liabilities	4.19B	3.85B	3.23B	2.91B	3.10B	2.85B
Stockholders Equity	6.35B	5.48B	4.59B	4.01B	3.67B	1.82B
Cash Flow
Free Cash Flow	101.05M	420.46M	52.29M	-216.59M	-657.75M	-605.74M
Operating Cash Flow	984.33M	1.10B	922.65M	899.81M	550.08M	224.60M
Investing Cash Flow	-895.89M	-713.26M	-938.22M	-1.01B	-1.29B	-819.07M
Financing Cash Flow	-66.90M	-418.72M	46.37M	-51.27M	1.08B	533.87M

Shaily Engineering Plastics Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2238.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SHAILY, the sentiment is Positive. The current price of 2238.9 is above the 20-day moving average (MA) of 2009.36, above the 50-day MA of 2039.79, and above the 200-day MA of 2099.25, indicating a bullish trend. The MACD of 59.97 indicates Negative momentum. The RSI at 69.02 is Neutral, neither overbought nor oversold. The STOCH value of 87.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SHAILY.

Shaily Engineering Plastics Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BEPL	71 Outperform	₹21.52B	13.36	―	4.47%	―	―
SHAILY	65 Neutral	₹110.14B	69.51	―	0.08%	31.18%	99.37%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MAHSCOOTER	61 Neutral	₹141.69B	987.71	―	1.57%	―	―
REFEX	60 Neutral	₹27.54B	16.52	―	0.19%	21.67%	25.86%
RHIM	59 Neutral	₹76.58B	38.50	―	0.55%	8.65%	―
MOL	46 Neutral	₹10.82B	-115.81	―	―	―	―

Shaily Engineering Plastics Limited Corporate Events

Shaily Engineering Plastics Files Revised SEBI Demat Compliance Certificate

Shaily Engineering Plastics Limited has notified the stock exchanges that a previously submitted certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 31 December 2025 contained technical errors and has been replaced by a revised certificate issued by its registrar and transfer agent, Bigshare Services Pvt. Ltd. The revised filing confirms that all securities received for dematerialisation during the quarter were properly processed, listed on the relevant stock exchanges, and that physical certificates were duly mutilated, cancelled, and replaced by depository holdings within the stipulated timeframe, underscoring the company’s adherence to regulatory and compliance standards in the handling of its securities.